It fully depends on the facts as presumably the sale was conditional on it being up to spec if the person had to travel to collect the vehicle. At least it is worthy of carefully considering the agreement that was in place and any conditions attached to the sale and who was responsible for the vehicle up to the point of collection.

regards and hope this helpshttp://www.wamstaxltd.com
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There was a second payment in July , a remaining £100 for this vehicle ontop of the 2400 paid in June. The receipt was done in July and has both payments on it. They have asked for the receipt so today I emailed a photo of it, and a screenshot of the £100 payment being paid via paypal. Hopefully that will put that one to rest. I have queried whether they are supposed to be asking for my personal bank statements 2011-2016, I expect I will hear back on Monday.

A proposal I put foward to take 50% of the unknown personal bank and Paypal payments as income has been rejected, they want to take all of it, the ones I can't account for anyway, they come to about £900. I expect they will be busting to extrapolate that back over all other relevant years as well.

Let’s smell the coffee... so you can’t explain £900 out of how much ? Surely they are arguing about more than £900 and how much (if anything ) have they proved you omitted from your accounts for the year?

regards and hope this helpshttp://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

Well folks.. finally an update, after me telling HMRC they can't possibly account for the same transaction in 2 years, and that I will not accept them moving it from one year to another to make it look like I made an error, it all went quiet for a bit apart from them requesting all my personal bank statements to back up my rental income figures. They were suspiciously silent for a whole month.

It was therefore rather a surprise that today I received contact from HMRC saying they have DECIDED TO ACCEPT MY FIGURES after all. The amount they are asking for in tax, penalty, NIC etc is now under £2000. Basically, I appear to have won my appeal and shall be paying the correct amount of tax!

https://imgur.com/a/rZjDZ0e

I have said OK to this. Just got to send 'em a cheque.

I feel I could not have done it without having found this forum and having the helpful advice from you guys, it made such a difference feeling like I was not totally on my own, and there were some handy nuggets of information which I hope will be of benefit to others reading this topic.

Glad you got a sensible solution BUT be careful in recommendations to others as no two investigations are identical and you had the benefit of a discussion with one or two peculiarities. I hope you’re not intending to write a book on handling HMRC lol

regards and hope this helpshttp://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website